According to a market research report by BIS Research, titled “Global Electric Vehicles Market – Analysis and Forecast (2017- 2026)”, the global electric vehicles market is estimated to grow in volume at a CAGR of 28.3% from 2017 to 2026. The demand for electric cars is increasing rapidly, with the global stock numbers crossing 2 million in 2016 after crossing 1 million in 2015.
The surge is attributed to the substantial amount of investments made by the automobile manufacturers for the research, development, and deployment of electric vehicles. Mass production prospects have also led to a decline in the prices of the key components such as electric batteries, and technologies such as regenerative braking. In addition, the governments of different nations are providing tax benefits and subsidies to fuel the production of EV’s. The government bodies are actively promoting the usage of electric vehicles in order to reduce high emission levels.
Electric vehicles (EVs) are automobiles that run using power from a battery, which is converted to useful operation by an electric motor, with negligible or no requirement of any kind of additional fuel. The technology, having been introduced in the early 1900s, has been used for mass commercialization of vehicles over the last few decades. Today, electric vehicles have transformed from an experimental model of a vehicle to a necessity, with automakers, worldwide, putting in efforts to make EVs available in all economic ranges.
This is evident from the meteoric rise in the sales of electric vehicles over the last five years, with over 2 million electric vehicles on the road at present, as compared to a few thousand in 2012. The global electric vehicles market is being driven by the increasing governmental regulations on emissions and fuel economy.
For instance, the European countries such as Germany, the U.K, the Netherlands, Belgium, Norway, and Luxembourg, among others, have implemented regulations on the amount of CO2 released which in turn is encouraging the consumers to purchase vehicles with low emission levels such as EV’s, plug-in hybrid, and hybrid vehicles. The European emission standards have set the average emission from new passenger cars to be reduced from 130 gram (g) per kilometer (km) travel in 2013 to 95g per km travel by 2020.
The increasing global concerns regarding the negative effects of climate change and the alarming pollution levels recorded in the major cities have created a demand for these vehicles. The market includes different propulsion type, component type, and vehicle type. The global electric vehicles market by propulsion includes Battery Electric Vehicle (BEV), and Plug-in Hybrid Electric Vehicle (PHEV).
The BEVs held the highest share in 2016 in terms of market volume; it is expected to grow at a higher growth rate as compared to the PHEVs. The factors such as improved charging infrastructure, increasing environmental awareness among consumers, and an increased range provided by the vehicle battery packs will propel the market growth for BEVs.
According to Surabhi Rajpal, analyst at BIS Research, “The increased demand for fuel efficient vehicles, and the continued governmental initiatives for the promotion of electric vehicles, along with the decline in the prices of battery, are expected to propel the growth of the global electric vehicles market.
Geographically, Asia-Pacific dominated the global electric vehicles market and is also expected to grow at the fastest rate during the forecast period. The automotive market in the APAC region is growing rapidly, and the development of electric vehicles is gaining attention due to the collective efforts from the government and manufacturers to initiate reforms and develop technologies. This, consequently, is expected to promote the sale of these vehicles, and make them economically efficient for use.”